Market downturn puts stock options under the microscope

Share purchase plans, restricted shares may address emerging concerns
By Edward Elliott and Claudine Kapel
|Canadian HR Reporter|Last Updated: 06/20/2002

Stock options, once the crown jewels of a total compensation package, have lost some of their lustre in the face of economic turbulence and market uncertainty.

The seemingly endless chorus for more options, so prevalent during the market boom, has evolved into a different tune as executives and other key talent realize that underwater options aren’t nearly as exciting as those on a steep growth curve.

In ideal circumstances, stock options play three important roles.